October 12 is National Savings Day. Its purpose is to empower people to feel more confident about their relationship with money by learning that saving money can be a simple, straightforward experience.
Forty percent of Americans have less than $300 in savings. This is a drop compared to the prepandemic figure of $400 in savings.
The first step in financial planning is to make a list of goals and create a budget. A budget maps out costs and bills each month, such as rent, utilities, food, and car payments.
Part of the money not going to necessities can be used to build an emergency savings account, which can cover unexpected bills, such as home repairs or health care costs.
Having money deducted from your paycheck – even as little as $25 a month – that is automatically put into a savings account can add up over time. You also can have a percentage of your paycheck deducted for savings, such as 5 to 10 percent.
As savings are being built up, contributions can be made to college and retirement funds. Be sure to find out whether your employer will match your retirement contributions and don’t leave this money “on the table.”
Being financially resilient is more than having access to money. It includes being conscious of your own financial landscape, being aware of available resources, and being willing to seek out and take advantage of opportunities that will support and increase your financial wellness.